PBF Energy 2012 Annual Report Download - page 79

Contractual Obligations and Commitments
The following table summarizes our material contractual payment obligations as of December 31, 2012:
Payments due by period
Total
Less than
1 year 1-3 Years 3-5 Years
More than
5 years
Long-term debt (a) ......................... $ 718,942 $ 26,741 $ 16,701 $ — $ 675,500
Interest payments on debt facilities (a) ......... 442,853 67,239 130,921 128,505 116,188
Delaware Economic Development Authority
Loan (b) ............................... ———— —
Operating Leases (c) ........................ 190,687 43,683 61,445 45,205 40,354
Purchase obligations (d):
Crude Supply and Offtake Agreement ...... 536,594 536,594 — — —
Other Supply and Capacity Agreements .... 507,830 66,405 97,619 88,866 254,940
Construction obligations .................... 16,481 16,481 — — —
Refinery contingent consideration (e) .......... 21,358 21,358 — — —
Environmental obligations (f) ................ 15,287 2,677 1,635 1,856 9,119
Pension and post-retirement obligations (g) ..... 70,332 3,029 5,801 11,094 50,408
Tax receivable agreement obligations (h) ....... 160,011 1,007 29,200 20,199 109,605
Total contractual cash obligations ............. $2,680,375 $785,214 $343,322 $295,725 $1,256,114
(a) Long-term Debt and Interest Payments on Debt Facilities
Long-term obligations represent (i) the repayment of indebtedness incurred in connection with the senior
secured notes offering; and (ii) the repayment of our catalyst lease obligations on their maturity dates.
Interest payments on debt facilities include cash interest payments on the senior secured notes, catalyst lease
obligation, plus cash payments for the commitment fee on the unused ABL Revolving Credit Facility and letter
of credit fees on the letters of credit outstanding at December 31, 2012. With the exception of our catalyst leases,
we have no long-term debt maturing before 2020 as of December 31, 2012.
(b) Delaware Economic Development Authority Loan
The Delaware Economic Development Authority Loan converts to a grant in tranches of $4.0 million
annually, starting at the one year anniversary of the Delaware City refinery’s “certified re-start date” provided we
meet certain criteria, all as defined in the loan agreement. We expect that we will meet the requirements to
convert the loan to a grant and that we will ultimately not be required to repay the $20.0 million loan. Our
Delaware Economic Development Authority Loan is further explained at the Delaware Economic Development
Authority Loan footnote in our consolidated financial statements, “Item 8. Financial Statements and
Supplementary Data.”
(c) Operating Leases
We enter into operating leases in the normal course of business, some of these leases provide us with the
option to renew the lease or purchase the leased item. Future operating lease obligations would change if we chose
to exercise renewal options and if we enter into additional operating lease agreements. Certain of our lease
obligations contain a fixed and variable component. The table above reflects the fixed component of our lease
obligations. The variable component could be significant. Our operating lease obligations are further explained in
the Commitments and Contingencies footnote to our financial statements, “Item 8. Financial Statements and
Supplementary Data.” During 2012, we entered into agreements to lease or purchase approximately 2,400 crude
railcars that will be utilized to transport crude by rail to our Delaware City refinery. Any such leases will commence
as the railcars are delivered. Railcar deliveries began in the fourth quarter of 2012. In addition, in January 2013 we
entered into an agreement to lease or purchase an additional 2,500 railcars that will also be utilized to transport
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